Wrap Text
TAW - Tawana Resources NL - Mofe Creek Iron Project Strike Extensions Secured
Tawana Resources NL
(Incorporated in Australia)
(Registration number ACN 085 166 721)
Share code on the JSE Limited: TAW
ISIN: AU000000TAW7
Share code on the Australian Stock Exchange Limited: TAW
ISIN: AU000000TAW7
("Tawana" or "the Company")
Mofe Creek Iron Project Strike Extensions Secured
HIGHLIGHTS
- Mofe Creek Strike extensions secured via Binding Option Agreement with
Liberian exploration company
- 48 km strike length of highly prospective itabirite interpreted
- DSO lump magnetite averages 63.8% Fe and low contaminants
- Coarse grained itabirite averages 35-50% Fe with low contaminants
- Licence 10 km along strike from abandoned Bomi Hills Fe ore mine; +50 Mt
DSO magnetite and +100 Mt sinter feed
- Large discrete magnetic anomalies comparable to Bomi Hills
- Licence 25 km from coast, adjacent to an decommissioned heavy-haul railway
and only 65 km from the deep sea port of Monrovia
- Aeromagnetics survey planned for July 2012
Potential exists for rapid development of low capital intensity DSO Fe ore
- project generating significant cash flow
Tawana Resources NL (ASX: TAW, the `Company`) is pleased to announce the signing
of a Binding Option Agreement to secure additional strike extensions to the
Company`s 100% owned Mofe Creek license in western Liberia, referred to as the
Mofe Creek Iron Project.
Tawana Resource NL, Managing Director, Len Kolff said "This represents an
exciting opportunity to explore highly prospective Archean geology within one of
Liberia`s historic premier iron ore districts."
"Initial reconnaissance sampling is very promising, returning over 60% Fe with
low impurities whilst the project is located only 25 km from the coast, adjacent
to a heavy haul railway and only 65 km to an existing deep water port."
Binding Option Agreement
The Company has signed a Binding Option Agreement with a Liberian Exploration
company to secure prospective strike extensions to the Mofe Creek Iron Project
in north-west Liberia. The terms of the Agreement remain commercial in
confidence until the option period and due diligence has been completed. The
Company is to pay the Vendor US$10,000 for exclusivity over a 60 day period
whilst carrying out due diligence, after which it has the option to enter into
commercial terms to secure strike extensions of the Mofe Creek project.
Highly Prospective District Geology
The Mofe Creek Project is located within one of Liberia`s historic premier iron
ore mining districts. The project is 10 km along strike from the abandoned Bomi
Hills iron ore mine. Historic production at Bomi Hills is poorly documented;
however estimated historic production by the Government of Liberia is 50 Mt of
high-grade magnetite and 100 Mt of high-grade sinter feed concentrate.
Bomi Hills produced high-grade direct shipping ore (DSO) magnetite in addition
to magnetite concentrate beneficiated from itabirite (metamorphosed and re-
crystalised banded iron formation). DSO magnetite averaged 64.5% Fe, 4.5% SiO2,
1.5% Al2O3 and 0.13% P, of which 53% formed lump material (average 11-37mm) and
47% formed fines (<11mm). The beneficiated low grade itabirite concentrate
averaged 64% Fe, 6% SiO2 and 0.04-0.05% P and was used to produce sinter feed
(Gruss, 1973).
The genesis of the Bomi Hills magnetite deposit is not clearly understood,
however, general consensus is that it is hypogene and represents an itabirite
that has come into direct contact with rising gneissic fronts and deep seated
intrusions causing enrichment to coarse massive magnetite by metamorphic
differentiation. Magnetite mineralisation is in direct contact with gneissic
basement and is partially blind.
Highly Prospective Project Geology
Preliminary mapping has confirmed approximately 35 km strike length of itabirite
with interpreted apparent widths of between 500 m up to 2 km based on mapped
outcrops. Broadly the itabirite dips shallowly to moderately steeply to the
south-west between 40 to 60 degrees. In some areas the itabirite is sub-vertical
demonstrating the stronger structural control adjacent to the Todi-Shear zone
and secondary structures off it.
Strike extensions secured under this agreement allow for potential 48 km strike
length in total of prospective itabirite. Strike extensions are based on
historic aeromagnetics data flown by the US Geological Survey during the mid-70s
where similar scale and intensity magnetic anomalies are noted along strike from
confirmed itabirite outcrops within the Companies license area.
The iron formation is medium to coarse grained, sugary laminated quartz-
magnetite +/- hematite with an average grain size of 2-5mm at varying degrees
of weathering. Where strongly weathered, the material is less magnetic and
easily crumbled by hand to liberate iron oxides from quartz gangue. From
approximately 72 rock chips sampled to date, the iron formation averages 35-50%
Fe, 45-20% SiO2, 0.7% Al2O3, <0.01% P2O5, 1.32% LOI and has been mapped over 35
km of strike. Additional strike extensions secured under the JV are interpreted
to extend the total strike to 48 km. No sulphur and below detection or at
detection limit Ti, V or Cr was recorded within the samples.
Reconnaissance rock-chip sampling has confirmed high-grade DSO lump magnetite in
outcrop on at least one of the strike extensions further enhancing prospectivity
within the area.
(Mofe Creek license (red) and JV license (blue) with infrastructure and historic
Bomi Hills mine as overlay on analytical signal magnetics image. Interpreted and
confirmed strike extensions highlighted by magnetic anomalies to north-west and
central-south of TAW license area - Image removed for sens purposes.)
Metre scale outcrops of massive magnetite were also observed within the license
area further enhancing the exploration model for hypogene, massive magnetite
bodies like Bomi Hills. High-grade weathered friable hematite/magnetite and
massive magnetite sampled in outcrop within the area returned on average 63.8%
Fe, 3% SiO2, 2.4% Al2O3, 0.08% P and 2.6% LOI in 3 samples. This demonstrates
the hypogene magnetite potential similar to Bomi Hills and further enhances
prospectivity.
(Left: Coarse grained, laminated quartz-magnetite iron formation. Right:
weathered variety of similar rock type crushed by hand forming soft, friable
quartz-magnetite sands easily beneficiated by magnet pen - Image removed for
sens purposes).
(Outcropping itabirite in project area; very coarse with outcropping massive
magnetite (left) and more steeply dipping zone (right) - Image removed for sens
purposes)
Left: Outcropping iron formation with larger 10`s cm scale magnetite
segregations. Right: Weathered, softened magnetite from outcrop forming high-
grade, clean magnetite/hematite fines- Image removed for sens purposes)
All samples were assayed by SGS Liberia and were sourced from in-situ
outcropping material, were dried and crushed to a nominal 2 mm using a jaw
crusher then the whole sample pulverised in a LM2 to a nominal 85% passing 75
Picam. A 200g sample was then scooped, with iron ore analysis of majors and
minors by borate fusion-XRF.
Location and Access
The project area occurs within Grand Cape Mount and Bomi Counties in Western
Liberia and is approximately 100 km drive from Monrovia on well-maintained
sealed roads, 20 km from an historic heavy-haul iron ore railway and deep sea
port and 25 km from the coast.
Access to the project area is excellent with both sealed and laterite roads
traversing the license area which is characterised by low, undulating topography
and widespread shrub with isolated forested areas.
(Left: Well-maintained sealed main road from Monrovia through license area.
Right: Laterite road, topography and vegetation within license area- Image
removed for sens purposes)
Infrastructure
The Project is well positioned for possible future infrastructure scenarios;
road or rail to the Monrovia deep sea port or road to coast and transhipment via
barge to deeper water for onward shipment.
A well-maintained 100 km long sealed road exists from the central licence area
to the city of Monrovia. In addition to this a decommissioned heavy-haul iron
ore railway* exists from the Bomi Hills mine to the deep water port of Monrovia;
20 km east from the easternmost magnetic anomaly. Rail distance from Mofe Creek
to the port of Monrovia is 65 km.
Alternatively the Project area is approximately 25 km from the coast for
possible stand-alone haul road construction, trucking and transhipment via barge
to deeper water shipping and infrastructure solutions.
Next Steps
The company will complete due diligence on strike extensions under the JV
agreement. The Company has contracted an airborne geophysical service provider
to fly aeromagnetics over the project area currently scheduled for early July
2012. Field mapping and rock-chip sampling will be carried out in parallel in
order to define target areas in conjunction with air magnetics for pitting and
or trenching.
For further information please contact:
Tawana Resources (ASX: TAW) MAGNUS Investor Relations + Corporate
Communication
Lennard Kolff van Oosterwijk John Gardner / Dudley White
Office: +61 424942589 Tel: +61 8 9212 0101 / + 61 2 8999 1010
Reference: Gruss, H, 1973. Itabirite iron ores of the Liberia and Guyana
Shields. In: Genesis of Precambrian iron and manganese deposits; Proc. Kiev.
Symp., 1970 (Earth Sciences 9).
*Footnote: the railway line falls under the Western Cluster project currently
owned by Elenilto Minerals and Mining and subject to a Joint Venture with
India`s largest producer and exporter of iron ore in the private sector; Sesa
Goa.
The information in this report that relates to Exploration Results, Mineral
Resources or Ore Reserves is based on information compiled by Lennard Kolff van
Oosterwijk, who is a Member of the Australian Institute of Geoscientists
included in a list promulgated by the ASX from time to time. Lennard Kolff van
Oosterwijk is a full-time employee of the company and has sufficient experience
which is relevant to the style of mineralisation and type of deposit under
consideration and to the activity which he is undertaking to qualify as a
Competent Person as defined in the 2004 Edition of the `Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore Reserves`. Lennard
Kolff van Oosterwijk consents to the inclusion in the report of the matters
based on his information in the form and context in which it appears.
Sponsor
PricewaterhouseCoopers Corporate Finance (Pty) Ltd
8 May 2012
Date: 08/05/2012 08:44:00 Supplied by www.sharenet.co.za
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